A $90 million reduction to the state’s community mental health programs has some area CMH directors concerned.

The budget cut, which went into effect Tuesday, was outlined in a March 24 letter sent to 46 CMH programs across Michigan that provide services to people with developmental disabilities and serious mental illnesses.

Marianne Huff, director of Allegan County CMH Services, said the state made the cut to mental health services with that assumption that most people who received services from their local CMH would sign up and seek coverage under the state’s expanded Medicaid plan, Healthy Michigan, which opened for enrollment on Tuesday.

"They have this idea that Healthy Michigan was going to solve all the problems," Huff said. "They have been telling us they’re giving us the cut because they’re banking on Medicaid expansion that we won’t need all that money."

Allegan County CMH will have its general fund cut from $1.9 million to about $700,000. Key services will be affected, including services to the mentally ill who are in jail as well as the program’s 24/7 psychiatric services and crisis evaluation.

In 2013, it served about 675 people with its state general fund allocation. And while a portion of that population will be able to find coverage under Medicare, about 30 percent will not be eligible and will still require mental health services funded with general fund dollars.

That means they’ll have to close a lot of cases.

"This creates a moral and ethical problem," Huff said. "I can tell you a lot of CMH boards are going to start a waiting list for people that need psychiatric care."

CMH of Ottawa County is in the same boat, Executive Director Lynne Doyle said. It will see its general fund cut from $3.5 million to about $1.8 million.

Ottawa County CMH serves about 3,500 individuals each year.

Doyle said she is "very anxious" about how the cut will affect services.

"If everyone who is eligible applies and is accepted into the Healthy Michigan Plan, then the impact should be manageable," Doyle said, adding that she and her staff have "significant concerns" for folks who chose not to apply or aren't eligible.

"We are still mandated to serve these individuals and will have much less funding to do so."